Where Are You Stashing Your Money?

Kevin brought up an interesting point in the comments of an earlier post.  Is it really a no-brainer to contribute to your 401K in this economic climate?

I say yes.  My company does not match, and my 401K has lost a LOT of its value.  However, I have the benefit of time.  I’m only 29, and this economy will not remain static for the next 50 years.  No, there’s no matching.  Yes, I might be losing money right now.  But seeing as how 401K contributions are pre-tax, doesn’t logic dictate that saving 28% is a positive?

Even with the amount of debt I carry, I don’t think throwing 3% of my salary into a 401K account is going to hurt.

Where do you save your money?  401K?  Traditional or Roth IRA?  Savings?  Or, do you manage your own investments?

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3 Responses to “Where Are You Stashing Your Money?”

  1. kate Says:

    I have a Roth IRA that my mom made me open when I was 18 (bless her) and my current job contributes 7.5% of my salary and I contribute 4% to my 403B. YEAH. So I pretty much can’t ever quit, especially since I’m working for the school which put me in a ton (70K) of student debt as it is. Every bottle of water I steal from a college lunch spread is another small victory.

    Love this blog already, I migrated over from Jez. I’ll be reading regularly!

  2. tourjo Says:

    Buy some property and invest overseas. I think those two are good investment. And being houses are going for little or nothing no wis a good time to find a $10,000 -$20,000 somewhere. You know they soon push them back up once things start to look good. This is just my opinion.

  3. tart of darkness Says:

    Keep saving even though you are in debt. You are definitely doing the right thing. Also if you do not have a short term savings account you might look into starting one even if you put 1.5% in the 401K and 1.5% in the short term account. That way you have liquid funds to tap so you don’t need to go back to the cards. Even if you take some out every month you’ll still end up ahead.

    I disagree with tourjo for right now. Until you have a year’s net salary in the bank that you can tap if you lose your job (gods forbid) you shouldn’t invest in non-liquid assets.

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